How Central Banks Cause Income Inequality

The gap between the rich and poor continues to grow. The wealthiest 1 percent held 8 percent of the economic pie in 1975 but now hold over 20 percent. This is a striking change from the 1950s and 1960s when their share of all incomes was slightly over 10 percent. A study by Emmanuel Saez found that between 2009 and 2012 the real incomes of the top 1 percent jumped 31.4 percent. The richest 10 percent now receive 50.5 percent of all incomes, the largest share since data was first recorded in 1917. The wealthiest are becoming disproportionally wealthier at an ever increasing rate.

Most of the literature on income inequalities is written by professors from the sociology departments of universities. They have identified factors such as technology, the reduced role of labor unions, the decline in the real value of the minimum wage, and, everyone’s favorite scapegoat, the growing importance of China.

Those factors may have played a role, but there are really two overriding factors that are the real cause of income differentials. One is desirable and justified while the other is the exact opposite.

In a capitalist economy, prices and profit play a critical role in ensuring resources are allocated where they are most needed and used to produce goods and services that best meets society’s needs. When Apple took the risk of producing the iPad, many commentators expected it to flop. Its success brought profits while at the same time sent a signal to all other producers that society wanted more of this product. The profits were a reward for the risks taken. It is the profit motive that has given us a multitude of new products and an ever-increasing standard of living. Yet, profits and income inequalities go hand in hand. We cannot have one without the other, and if we try to eliminate one, we will eliminate, or significantly reduce, the other. Income inequalities are an integral outcome of the profit-and-loss characteristic of capitalism; they cannot be divorced.

Prime Minister Margaret Thatcher understood this inseparability well. She once said it is better to have large income inequalities and have everyone near the top of the ladder, than have little income differences and have everyone closer to the bottom of the ladder.

Yet, the middle class has been sinking toward poverty: that is not climbing the ladder. Over the period between 1979 and 2007, incomes for the middle 60 percent increased less than 40 percent while inflation was 186 percent. According to the Saez study, the remaining 99 percent saw their real incomes increase a mere .4 percent between 2009 and 2012. However, this does not come close to recovering the loss of 11.6 percent suffered between 2007 and 2009, the largest two-year decline since the Great Depression. When adjusted for inflation, low-wage workers are actually making less now than they did 50 years ago.

This brings us to the second undesirable and unjustified source of income inequalities, i.e., the creation of money out of thin air, or legal counterfeiting, by central banks. It should be no surprise the growing gap in income inequalities has coincided with the adoption of fiat currencies worldwide. Every dollar the central bank creates benefits the early recipients of the money—the government and the banking sector — at the expense of the late recipients of the money, the wage earners, and the poor. Since the creation of a fiat currency system in 1971, the dollar has lost 82 percent of its value while the banking sector has gone from 4 percent of GDP to well over 10 percent today.

The central bank does not create anything real; neither resources nor goods and services. When it creates money it causes the price of transactions to increase. The original quantity theory of money clearly related money to the price of anything money can buy, including assets. When the central bank creates money, traders, hedge funds and banks — being first in line — benefit from the increased variability and upward trend in asset prices. Also, future contracts and other derivative products on exchange rates or interest rates were unnecessary prior to 1971, since hedging activity was mostly unnecessary. The central bank is responsible for this added risk, variability, and surge in asset prices unjustified by fundamentals.

The banking sector has been able to significantly increase its profits or claims on goods and services. However, more claims held by one sector, which essentially does not create anything of real value, means less claims on real goods and services for everyone else. This is why counterfeiting is illegal. Hence, the central bank has been playing a central role as a “reverse Robin Hood” by increasing the economic pie going to the rich and by slowly sinking the middle class toward poverty.

Janet Yellen recently said “I am hopeful that … inflation will move back toward our longer-run goal of 2 percent, demonstrating her commitment to an institutionalized policy of theft and wealth redistribution.”The European central bank is no better. Its LTRO strategy was to give longer term loans to banks on dodgy collateral to buy government bonds which they promptly turned around and deposited with the central bank for more cheap loans for more government bonds. This has nothing to do with liquidity and everything to do with boosting bank profits. Yet, every euro the central bank creates is a tax on everyone that uses the euro. It is a tax on cash balances. It is taking from the working man to give to the rich European bankers. This is clearly a back door monetization of the debt with the banking sector acting as a middle man and taking a nice juicy cut. The same logic applies to the redistribution created by paying interest on reserves to U.S. banks.

Concerned with income inequalities, President Obama and democrats have suggested even higher taxes on the rich and boosting the minimum wage. They are wrongly focusing on the results instead of the causes of income inequalities. If they succeed, they will be throwing the baby out with the bathwater. If they are serious about reducing income inequalities, they should focus on its main cause, the central bank.

In 1923, Germany returned to its pre-war currency and the gold standard with essentially no gold. It did it by pledging never to print again. We should do the same.

No. The problem lies with those responsible for education. Because of the edewkashun system, sophistry passes for logic, and any concept which cannot be conveyed in 145 characters or less, exceed the attention span of the average college student.

Boris is gather family together every year for making of delicious meat pie. Pie is huge, almost is 50cm diameter measurement round. In-law family is bring vegetable, cousin Ivan butcher is bring it meat, second cousin Natasha is bring it turnip and potato, and Boris is provide for very large industrial cooking oven. Every one is cut and prepare vegetable, roll out dough. Pie is huge and everyone is have more plenty spare.

Neighborhood is smell pie while is baking and ask for slice for trying.

One year, pie is in oven and Boris is think maybe can make little extra ruble sell excess pie. How is can do to be fair? So Boris is take number of family member as divisor, make same number of share and print "redemption certificate". Everyone (except fat lazy nephew - long story for other time) is work hard and is have equal share entitlement.

Boris, as owner of very large industrial oven, is authority to issue and administrate share certificate. When pie is done, everyone is claim share and joyous indulgence of delicious meat pie... or can sell share.

But before is done for cooking, Boris is excitable for business prospect and is print extra redemption certificate. Boris is thinking, "there is much pie, maybe slice piece tiny smaller, more pie is can sell to hungry neighbor". What for hell, so Boris is print 2X share and sell to hungry neighbor.

Okay, okay, this is not real story, but you are imagining if one party is control issuance of redemption note (in case of central bank, "currency"), then when is double issuance, then share ownership is dilute for 1/2 but major holder (or bank) is now hold more and each of small share holder is reduce share. This is how central bank action is increase disparity between rich and poor. There is no additional delicious meat pie, just same as before, but everyone is have less for enjoyment except for bank which possess larger portion of smaller size piece.

This is simply fraud/theft. Theives dealt with appropriately, until government comes along and offers and opportunity for moral relativism, backed by guns, nukes, and drones. Government is legalized theft. Period

Yen, ol buddy ol pal, I think the SET of reasons are so complicated that each of us can realistically only look after themselves and their loved ones.

-- Speaking out (like here at ZH) does help open some minds.

-- Proper education would also help (less sociology majors for example, more required calculus and foreign language classes for example). A proper education would include financial literacy, and much of that using real money or other ways of demonstrating to our young 'uns how the world works.

***

But there are so many factors that just being able to convince a few at a time (very few I have convinced) that desperate times call for desperate measures.

They don't want to hear it. It is up to us, the aware, to be able to take care of those we love who did not listen. And that is only if we really love them or someone is some kind of saint or something (the Bearing is no saint).

My dear YC, allow me to assist you in destroying Tyler's article. Corruption is an INDEPENDENT FACTOR above and beyond either forces of change (technology, globalization) and the fiat money system. Corruption can and does trump the other factors and make them far, far worse threats. Corruption is the dominant threat, and any analysis that overlooks or obfuscates this fact is either foolish or counterproductive...or both.

So I will repost this as weekend depth of winter reading. Composed in a fit of clarity at the kitchen table one 4:00 AM, it was one family man's strong response concerning 'What Must Be Done'. I hope someone can use these ideas as a practical addition to a plan of action. Note that the Bernanke and Geithner names can be swapped out now. But, still, think about DISRUPTING THE NEXUS OF CORRUPTION as the highest, noblest and most survival-critical need of our time.

2. Companies must reserve against impaired assets under mark-to-market rules

3. Any health or life insurance company with more than $100 million in assets must report on their holdings and risk factors, specifically including exposure to real estate, mortgage-backed securities, derivatives, and other exotic financial instruments.These reports will be to state insurance commissions and the federal government, and will also be made available to the public on the Internet.

B. PENSION FUNDS

1. All private and public pension funds must disclose their funding status and establish a plan to fully fund accounts under the assumption that net real returns across all asset classes remain at zero for at least ten years

Civilization without coercion is like physics without force. Impossible ideals make the opposite happen in the real world! That reactionary revolutionaries like you, Nanny Moose, seriously propose absolutely impossible "solutions," that could never exist in the real world, is one of the main reasons why the real problems continue to automatically get worse faster.

Metaphorically speaking, the runaway problem is that the Vicious Wolves, and their Domesticated Dogs, control the vast majority of Zombie Sheeple, while the Black Sheeple who do not like that situation propose their bullshit "solutions" that everyone should become better Sheeple, while the only possible realistic resolutions that might make things better is if everyone became better Wolves.

The problem is that a debt based monetary system is a fraud to its very core.

The financially "illuminated" know this, the "unilluminated" do not and their countries get bankrupted to the "illuminated" criminals who enjoy "taking candy from a baby," as it were.

When money is issued INTO SOCIETY (not through society, which is the misdirection used by the ALL the economics departments... they ALWAYS assume more money is avilable and NEVER address the incipient issuance of the money into society) as a debt bearing instrument the money flow goes like this...

If the PRIVATE INTERNATIONAL BANKING CARTEL lends $20 to society/government, society/government owes $21 to the PRIVATE INTERNATIONAL BANKING CARTEL due to double entry bookkeeping adjustments that add $1 interest liability to society/government's balance sheet and $1 interest asset to the PRIVATE INTERNATIONAL BANKING CARTEL'S balance sheet.

Read that over until the following becomes crystal clear: Society/government possesses $20 but owes $21 to the PRIVATE INTERNATIONAL BANKING CARTEL that owns the ONLY DOLLAR AVAILABLE TO PAY OFF THE DEBT.

WHO is sovereign and WHO is a financially subjugated vassal of the PRIVATE INTERNATIONAL BANKING CARTEL?

Just like losses, you can't make this up on volume as every $20 issued into society HAS THE EXACT SAME CHARACTERISTIC!!!!!!!

“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”Napoleon Bonaparte

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creation of inextinguishable debt.”
Henry Ford

"If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of coin or currency in circulation. This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash, or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless situation is almost incredible -- but there it is."Robert Hemphill. Credit Manager, Federal Reserve Bank of Atlanta In the foreword to a book by Irving Fisher, entitled 100% Money (1935)

"The youth who can solve the money question will do more for the world than all the professional soldiers of history."Henry Ford, Sr.

"Think for yourselves and let others enjoy the privilege to do so, too." -- Voltaire

Those who control money have the power of GOD, the power over life and death and if you think this is simple rhetoric you are a muppet, a sheeple, or whatever.

And yes you are in that queue too so don't kid yourself.

Most of you just perceive this reality as an excuse to do WHATEVER it takes to tap into the money flow and this is the root of all evil. It's not the love of money, It's the love of staying alive which means you must do WHATEVER it takes to tap into the flow of money. I am not just talking about EARNING money, thats mostly for rubes and is totally inadequate.

I am talking about becoming one of the "illuminated" who understand all of what I have written above and then undertake the task of doing WHATEVER it takes to tap into the flow of money.

In 1923 Germany was ass deep in hyperinflation which did not kill the Reichsmark until Nov 1924. After that the Rentenmark was born only to also die within a year or so. So what is the author referring to in 1923?

Here's the job requirements to be an economist at Facebook..yikes..they have to do some coding..I have not run across one economist that can script in Python or Ruby yet..this sounds more like qualifcations to be a quant..Facebook gets money out of thin air too:) Watch out when economists are out there in full force.

Facebook is seeking their own version of the National Association of Realtors' Chief Economist Lawrence Yun. A person or persons with credibility who can spin data to show value in what Facebook has to offer, whether there's real value there or not.

No matter who Facebook hires or how talented a team of data analysts they assemble, the conclusion will always be, "There's never been a better time to buy Facebook".

The Bureau of Labor Statistics plays the same role for the Federal government. Here's their official bullshit mission, from their website:

"The BLS is an independent national statistical agency that collects, processes, analyzes, and disseminates essential statistical data to the American public, the U.S. Congress, other Federal agencies, State and local governments, business, and labor."

In our current system when capital is injected into the system - when money is 'created' by government - those who receive those funds first profit the most. Tarp funds get 'invested' and make MORE money for the recipeients - Banks and Wall Street. They take this 'cheap/free' capital and leverage it buying stocks, commodities, etc. BUT at the same tiem this additional capital entering the economic system DOES cause inflation (though at present enormous effort goes into hiding or minimizing this effect. So while big banks are making money by buying hard assets and reselling them (just why does JP Morganown tankers full of oil and why does GoldmanSachs own warehouses full of aluminum?) at ever increasing prices, the average consumer is hit with higher and higher costs. More and more wealth is transferred to the wealthiest - those close to the 'spigot' of cheap money flowing from government. Those farthest away are hit with the full costs of this policy.

If the spigot of government money went straight to the people things would be vastly different. Imagine if TARP funds were used to rewrite every problematic mortgage at lower rates and longer terms to allow homeowners to stay in their houses. After all, many banks simply too k those TARP funds and reinvested them in things like Australian bonds at 5%. But if that money went to refund mortgages, lower interest rates on consumer credit and student loans..... the banks would have been 'saved' - since all that mortgage backed paper would still be making payments instead of in default, but no.............the banks wouldn't be making anywheres near as much

What's the first thing we think of, upon awakening? I've got to piss, comes to mind. (am I wrong?)

Ok, so we've pissed/defecated< ect> What happens next? Family! How will jenny and jr. get home from extracurricular activities?

Who Cares? Turn off the TVs 'and be parents. The same ideas'apply to your work environments! JFC! Stand up and lead!

XenoFrog is an perfect example of leadership! The woman has conviction and taken her hits, but never quit! I respect her ! She's put forth an idea that many read and agree with! I commend her tenacity!

Yen, how does "parenting," and mindless child-rearing, in and of itself, do anything other than serve government oppression by supplying the machine with more souls, suppressing wages, and driving up prices through excess demand? Every American seems to see him or her self as an 1850 cattle rancher. In the post-ag age, de rigeur breeding is clearly making the problems worse. Oh wait, your kids have all the solutions, and are thus inexpendable, right?

It wouldn't be a problem if 1% were getting richer, the only problem is that for the 1% to get richer its been the trend that the 98% have to get poorer.

That economic model is old, out-dated and broken.

I don't really like bitcoin, but it seems to be slowly "dis-infecting" the economy by carving a "free market" zone out for real enterprise to thrive in, lets face it, the chances of a new business to thrive in bankster land ruled by king koopa is zilch, but start a bitcoin business now, and your probably going to do well.

Bitcoin just bypasses all the problems that a conventional currency "system" has to trudge through just to make a fucking buck.

I applaud Overstock for having some balls and spear-heading the new frontier of government / bank free currency.

Obviously bankers understand buy
low sell high even if many retail
brokerage customers ignore the
market price per underlying value
or income value of shares relative
to the company or its potential
or real dividend paying ability.

But it they're TBTF banks, then, like
Sly and the Family Stone, they can keep
riding their own assets higher and higher,
knowing whoever's selling any bubble
will have to face, the, the inevitable
official policies of "hand it over,"
"pay for loss sharing" so as to share
in the losses of exactly what you just
sold, and free money for banks, no
interest for bubble sellers.

So the fact of TBTF can only
predispose the market to extensions
at the extremes.

The banks buy the adversity, including
when they create it, whether by
virtue of the fact of TBTF's
existence in itself of adversity's
deliberate creation by same.

So, their monetary incentive is
seeing more adversity.

When they can sell said adversity
in tranches, the higher their
credit rating agency will rate
a product, especially beyond its
true worth, the more pre-defined
profit on the short side is
availed.

If someone's not only in the widget
business but utterly dominates it such
that it can flood the market when it
wants to, but otherwise charge higher
prices monopolisitically, and then that
someone's also a banker, then he can,
perhaps at first perplexing onlookers,
lend like mad to his own actual and
new competitors so that they can
also produce widgets.

Then, by flooding the market, and
calling the loans, those would be
competitors become sharecroppers.

Interesting chart. I think it suggests much of the "problem" is that since about 1993 we've exited the fool's paradise in which income equality was at an extreme level. Hey, look, capitalism had more equal results than communism! And maybe we got used to thinking that was natural and stable.

The trend is ugly, but it will have to go on for another couple of years before the chart justifies panic.

We need interest bearing loans and mortgages. And by extension, central banking. Why?

People are lazy. Unless they have a debt threat over their head they avoid work and effort.

People want things now. Unless people have the ability to borrow in all forms for all reasons, they will not consume as much.

People have and seek confidence. They see debt as a 'good deal' as someone else shows confidence in lending to them.

When you group peoples wants and needs, you end up with large organizations, even nations, that have exactly the same wants and needs. Ie. Debt threat creating effort, instant satisfaction creating demand, confidence.

I can't imagine being so thick that these principles aren't blindingly clear and valid reasons for things being the way they are.

Prime Minister Margaret Thatcher understood this inseparability well. She once said it is better to have large income inequalities and have everyone near the top of the ladder, than have little income differences and have everyone closer to the bottom of the ladder.
__________________________________________________________

No kidding... And how do you know that everyone is near the top of the ladder? By checking their incomes?

Its the RULING CLASS whose instruments they be that causes income inequality.

The creation of the FED and its greenbacked monetary GOD of the 20 th century; who owns it since day 1 and how it was structured to spread its Mantra : to be the instrument of BIG BUSINESS after WW1 European demise; says it all.

ZH has provided that timeline very effectively for all to read and understand.

In today's Pax Americana world its the legacy of Reaganomics that causes income inequality.

Reagan and Thatcher PLANNED it that way to inhibit the rise of welfare state from drowning first world in runaway inflation fed by salary rises pegged to monetary devaluation relative to king oil commodity price which was ALL IMPORTED.

The solution of Reaganomics was worse than the original problem which required that first world move away from ME arab oil as of 1979...Reagan and <Thatcher thought differently. They started the FIRE economy on totally deregulated basis.

From B-W revoke to Reaganomics neoliberal initiation as global financial template, the world has morphed into this dystopia, based on NWO slave labour outsourcing arbitrage mantra and the oligarchy class moving up to an Apexed pyramid, economically elitist structure; now full of self justifying hubris oozing out of every selfie, corrupted pore.

"We are the bestest and the brightest bitchezz 'coz we own Congress and the Supreme."

ZH still confuses MEANS and ENDS.

CBs are instruments of a MINDSET and POWER STRUCTURE that has now gone global and is teetering under its own deadweight increasing by the day.

The world Oligarchy now owns the Reaganomics creation as the US Oligarchs have lost their grip on the Frankenstein monster of their own creation, all dressed in CIA/NSA/MIC battle fatigues and drone brigaded merchandising of death.

What else can we sell except our version of the Praetorian guards to protect the Empire...? Ave Caesar!

And when thieves fall out we revert back into the 1914 European colonial power conundrum.

History teaches us about identifying Cause and Effect; thus of inevitable consequences.

it isn't just the fed. the execs and paper pushers have corrupted the entire system to favor themselves. this only ends when the money is no good anymore and even then it will only end long enough for a new corrupt monetary regime to be established at gunpoint. It will always be corrupt, it is human nature. No-one can be trusted to administer the money or to safeguard free and fair markets for all.

What does the chart really show? It shows that beginning in mid 1970s, US began its double digit credit expansion. Another words lots of fictitious CAPITAL was created. This is what is creating inequality.

The rich are using fictitious CAPITAL to buy out and collect rents on everything while also reaping benefits form job outsourcing and illegal migrants

What's the end-game? There isn't one other than to impose austerity, steal pensions, IRAs, bank accounts ,Social Security and collect poll taxes for their own benefit.

The issue is fairly simple. A very significant portion of our GDP and National wealth is not adding value. It is not invested in the means of production but in complex derivitives which are essentially the gaming tools of a gambling casino open to a very small club of financiers. Fundamental derivitives are very essential and valuable tools but the other 95% do not add value to our economy. The failure here is in leadership. The great Teddy Roosevelt understood that capital must be directed to and available to support endeavors that add value. Therefore he broke up the trusts that unfairly accumulated and garnered the nations capital in a wasteful and unproductive fashion. Unfortunately our corrupted two party system won't bring forth candidates that will yield a "Big Stick". All see is flailing nerf bats amongst a din of spin.

The only thing that seems to make sense you need 2 currencies to seperate things for monetary policy to really work effectively. You need a deflationary currency for labor payment that is used strictly by consumers to consume and a secondary currency that is inflationary that is used strictly for the pricing of goods and services. You can't use a single currency in a 2 pole system without being able to mellow out the extremes aka inequalities. It comes down to sets and subsets a point can fit in a a line but line can't fit in a point. You can't control the length of a line with one point because it assumes more than 1 point.

To cancel out inequality is simple both cyle inverse to each other so it is the equivalent of the infinity symbol where the inflationay amplitude peak above 0 coincides with the deflationary valley below 0 at the same time in relation to time.

The inflationary currency can be fiat but the deflationary has to be metal backed, specifically silver since there is plenty of it left to be a currency still unlike gold. This way you can mellow out the boom and bust cycles by manipulating one or the other or both to get the desired amplitude difference based on the monetary policy need at that point and time.

Control freaks can't give up the idea of the one ring to rule them all mentality and that is why this shit will keep going on in perpetuity until their thinking evolves from 1 to at least 2 dimensional thinking. We live in a 3 dimensional world (4 actually the space is empty with a point aka the 4th dimension and when connect the 3 to the point you get a pyramid not matter which directional movement you make) until people start thinking and developing polices based on that we just keep spinning in circles making the same mistakes over and over.

My main point is if prices stay fixed in paper fiat and everyone's salaries stay fixed in the same face value except that currency is backed by silver you'd increase purchasing power by about 1200% for every quarter earned right now which would fix a lot of problems and kickstart the economy at the same time. It is easy then to counteract the businesses raising prices or dropping them in the inflationary currency by bleeding the money out of the system to counter until the everything is back in balance.

BTW this type of a setup shouldn't punish production at the expense of wages and earning potential it should just keep what one can buy in relation to the other relatively constant if the proper adjustments are made. It counters against the stealth inflation tax which is hidden by in the reduction of purchasing power.

To illustrate the example take mimimum wage. Today it is $7.25 in 1961 it was $1.25

A quarter in 1961 had 90% silver in it and we had a silver standard at the time.

Today that same quarter is still legal tender but today's quarter has no silver in it.

So a quarter on the silver standard can buy $3.46 worth of goods and services based on today's prices while a quarter that isn't can only buy $0.25 in goods and services in today's prices.

They deflated the purchasing power for each quarter earned by 1384% compared to what it could purchase in 1961.

So minmum wage in 1961 of $1.25 can buy $17.30 worth of goods and services in today's dollars while today's minum wage of $7.25 can only buy $7.25 worth of goods and services in today's dollars.

If wages were paid in silver standard that $7.25 could really buy $100.34 in goods and services in today's dollars.

That would kickstart the fucking economy right there giving back 1384% in purchasing power to everyone until you hit some targeted growth level then you use monetary policy on both ends to keep the relative difference sustainable.

The expectation of redistribution comes from the granting of the privilege of enclosure ... the peons were driven from the commons into the factories, when those factories close they didn't get the commons back. Do they not have the right to expect something to replace them?

For sure, RaceToTheBottom! The handful of huge accounting firms are vital to the on-going operations of the fundamentally fraudulent accounting systems. Small scale accounting is mathematical. However, larger scale accounting is no longer done by arithmetic, but rather is a form of magical mathematics, "mathemagical" accounting.

The big accounting firms are crucial to the way that our monetary system operates a our state religion, i.e., faith-based money, which actually based on the long history of backing up fraud with force. There is a good argument to be made that the bookkeepers have become the leaders of the organized crime which is controlling civilization, and thereby driving it towards madness and self-destruction. There is deliberately no connection allowed to be consciously made between economics and ecology, because doing so reveals that the privatized making money out of nothing as debts is FRAUD, backed by the FORCE of governments. The big accounting companies are instrumental in keeping that kind of bookkeeping for society going, which necessarily drives social polarization and destruction of the nature world. (However, the notions that going back to gold and silver as "money" are way too old-fashioned in a world where electronics and atomic energy already exist.)

The only way that accounting professionals could again become useful to society is IF "money" was integrated into the general understanding of energy systems, as in engineering, etc.. However, that itself is NOT possible unless one understands human energy systems enough to understand how and why money is measurement backed by murder. The currently established big accounting companies are the typically current kinds of professional liars and immaculate hypocrites, who get to indulge in the nonsensical divorce between economics and ecology, so that the ways that the banksters' privatized frauds are backed by the public powers to tax, and to kill to back up the rule of law, is something that they are able to deliberately ignore, and to disregard the longer term consequences of doing. From a sublime point of view, mathemagical accounting is madness, but nevertheless, those who benefit from being able to get away with doing that make fantastic profits by thereby cooking the books. That profit thereafter enables them to continue buy up control over political processes and social institutions.

As more and more people are faced with less and less natural resources left to strip-mine, there is no doubt that freedoms will continue to decrease. The only questions are how that will happen. The more that we refuse to face those facts, the worse the ways that freedoms are destroyed become! Right now, globalized Neolithic Civilization is locked into a vicious spiral of bullshit accounting controlling the most important economic decisions that are made. Mathemagical accounting is central to the runaway social insanity that dominates the behavior of human beings today. Obviously, some of the high priests of that state religion are the biggest accounting corporations, in bed with the banksters, and all the rest of their buddies.

The primary deviancy amplifying factor is the runaway triumph of organized crime taking control over what governments do, and thereby using the power of government to systematically serve their interests.

There are no human beings which are millions or billions of times more competent than all other human beings. The CEOs of corporations have not actually become hundreds of times more competent than the other workers in those corporations, while before they were only tens of times more competent, which is what the changes in the earnings of those people would require, if it were not only the expression of corruption. The cause of that growing disparity is the runaway triumph of the application of the methods of organized crime, which enter into reinforcing feedback loops to drive them automatically to go further, faster.

As far as I can tell, that process has already passed the event horizon, into a social black hole. The real situation was that government was the biggest form of organized crime, that was controlled by the best organized gangs of criminals. IN THEORY, citizens were members of that organized crime gang, that ought to have had a say in balancing out how those governmental powers were used. However, IN PRACTICE, the vast majority of citizens have been reduced to bullshit consumers, who are way too easy to continue to fool, and who therefore have allowed the powers of "We the People" to be used to rob them blind. The central banks are merely the leading symbol of a complete system of legalized lies, backed by legalized violence, advancing private monopolies, using public powers. There is no doubt that they are the primary drivers of social inequality. However, without better democratization of the death controls, then the debt controls must necessarily get more and more unbalanced, until they become so extremely unbalanced that they madly destroy themselves.

The overwhelming vast majority of people have no way to begin to understand real politics in any better and more effective ways, because they have been too successfully brainwashed, so that they no longer even want to know. The ONLY real solutions would require enough people understanding that as citizens they are necessarily members of an organized crime gang, which should participate in operating the combined money/murder systems. However, those who were the best at backing up debt controls with death controls have already now leveraged that up to the point where there is no way to imagine the democratic process saving itself from its rampant runaway insanity running amok, towards mad self-destruction. Rather than a return to some saner democracy, we are headed towards more automated and robotic organized crime, which will drive the social polarization and destruction of the natural world over the brink ...

SINCE THE REAL PROBLEMS ARE DUE TO ORGANIZED CRIME, THE ONLY REAL SOLUTIONS ARE BETTER ORGANIZED CRIME. HOWEVER, SINCE MOST CITIZENS DO NOT UNDERSTAND AND DO NOT WANT TO UNDERSTAND THAT THEY ARE MEMBERS OF AN ORGANIZED CRIME GANG, THEY CAN NOT DO ANYTHING EFFECTIVE TO PREVENT MORE RUNAWAY SOCIAL INSANITIES, AS THE RESULTING EFFECTS OF THE ALREADY TRIUMPHANT ORGANIZED CRIME, USING THE POWERS OF GOVERNMENTS TO ROB AND TO KILL, IN ORDER TO ADVANCE THE PRIVATE INTERESTS OF THE FEWER AND FEWER MORE AND MORE WEALTHY AND POWERFUL PEOPLE.

I think most people would not criticize Apple's profits that much. However, other companies, where they are leveraging the government (banks) are fair targets. The oligarch industries are also fair game.